Should you be looking for something smaller when the kids leave home or when you retire? Are you anxious to cash in on your home’s value in case the market takes a downturn?
Many people make the decision to downsize simply because it feels like the “right” time. Perhaps you’re not using all the space you have and you don’t want to shovel snow or mow the lawn. It could be that you want to be closer to family, and have a house that’s easier to manage in old age. Or it could be a financial decision; maybe it’s time to cash in on the equity of your home.
All of the above are good reasons to downsize, but it’s a big decision, financially and emotionally, so it’s worth bearing these considerations in mind before you sell:
If you’re hoping to downsize in order to have a nest egg for retirement, be realistic with your expectations. Downsizing from a $400,000 home to a $300,000 home isn’t going to leave you with as much as you might think for your retirement years after you’ve paid all the fees associated with buying and selling.
Some people actually spend more on the property they downsize to! This is fine if you have other sources of retirement income and you want to make your new home just perfect for your needs in old age.
It can be a mistake to sell your home too early if you’re going to be using that capital almost exclusively to support your lifestyle in old age.
Talk to an advisor to check your financial health and make sure a move makes sense for you.
Are You Ready?
Moving from a 2,000 square foot home to a 700 square foot condo is a big change. You won’t be able to bring all your belongings with you. If you’re used to hosting family gatherings, you will no longer have the space. You might not have an extra bedroom for one of your adult children to move back into (which could be a good thing!)
On the other hand, it might feel like a relief not to have to do all that cleaning or worry about gardening and snow piling up in the winter.
Still feeling unsure?
Here’s where Realtors® can help. A Realtor® can tell you exactly what’s on the market today and which new developments are coming up. We can show you around a few properties to see if smaller works for you.
If you live in Prince George, BC or surrounding areas, contact Team Powerhouse Realty. We’re always happy to help.